Hours after Indian Prime Minister Narendra Modi addressed the BRICS Summit in Brazil, US President Donald Trump announced that any country aligning itself with the “Anti-American policies” of the BRICS bloc would face an additional 10% tariff. The warning, delivered via Truth Social, adds new tension to an already fragile global trade landscape, particularly as the BRICS group expands its influence across the Global South.
The 2025 BRICS Summit in Rio de Janeiro opened with a strong joint statement denouncing rising tariffs and unilateral sanctions. Leaders from Brazil, India, Russia (online), and South Africa expressed concern over ongoing conflicts in Iran and Gaza and called for urgent reforms in global institutions like the United Nations and IMF.
Trump’s retaliatory stance came just hours later, declaring that nations aligning with BRICS risked a blanket 10% tariff. The former president did not specify which BRICS policies he deems “anti-American,” but his administration is pushing to finalise new trade deals ahead of a July 9 deadline, potentially enforcing a broader tariff strategy.
From its founding members: Brazil, Russia, India, China, and South Africa, BRICS has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the UAE. Over 30 other nations have expressed interest in joining or partnering with the group, attracted by its emphasis on multipolar governance and economic cooperation.
In his remarks, Brazilian President Lula da Silva drew comparisons to the Cold War-era Non-Aligned Movement, stating, “BRICS is the heir to the Non-Aligned Movement.” The group, now representing more than 50% of the world’s population and 40% of its GDP, is actively positioning itself as a voice for the Global South.
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Indian PM Modi and South African President Cyril Ramaphosa were present in Rio, while Russian President Putin participated virtually. Chinese President Xi Jinping, however, skipped the summit, sending Premier Li Qiang in his place. Despite differences, BRICS leaders agreed to support Ethiopia and Iran’s WTO membership and backed a pilot investment initiative through the New Development Bank.
The summit also addressed global tech concerns, issuing a statement on the responsible use of AI and fair compensation mechanisms. In parallel, environmental funding discussions gained momentum, with China and the UAE signalling support for Brazil’s proposed Tropical Forests Forever Facility to conserve endangered ecosystems.
The BRICS Summit showcased the bloc’s growing economic and diplomatic clout, even as questions remain about its internal coherence. Trump’s swift response underscores the geopolitical challenge BRICS poses to traditional Western dominance. As India continues to walk a tightrope between global alliances, its role in BRICS will be watched closely, especially amid heightened trade tensions with the US.
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Published on: Jul 7, 2025, 2:34 PM IST
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